Opening offers have a strong effect in price negotiations. The first offer typically serves as an anchor that strongly influences the discussion that follows. In research documenting price anchoring, psychologists Daniel Kahneman and Amos Tversky found that even random numbers can have a dramatic impact on people’s subsequent judgments and decisions. … Read Price Anchoring 101
For a Mutually Beneficial Agreement, Collaboration is Key
At the Program on Negotiation, we urge you to aim higher by combining such competitive value-claiming with collaborative value creation. Not because it’s the “nice” thing to do, but because it’s been proven to be the best path to a truly mutually beneficial agreement. … Read More
Overcoming Cultural Barriers in Negotiations and the Importance of Communication in International Business Deals
Communication in negotiation is the means by which negotiators can achieve objectives, build relationships, and resolve disputes. Most negotiators know that it is the most important tool you can have for successful negotiations. … Read More
Negotiating a Salary When Compensation Is Public
Faced with the prospect of negotiating a salary with a new employer, job candidates often feel anxious, confused, and tentative. Historically, organizations have tended to keep information about salaries for open positions opaque, assuming they benefit when prospective employees are in the dark about how much they might earn. But new laws and broader marketplace … Read Negotiating a Salary When Compensation Is Public
A Difficult but Well-Fought Negotiation Campaign
A negotiation campaign formed around saving and expanding legislation that assists Americans harmed by government nuclear testing. The efforts highlight the value of negotiating on multiple fronts. … Read A Difficult but Well-Fought Negotiation Campaign
10 Great Examples of Negotiation in Business
A number of noteworthy disputes among businesses, organizations, and individuals made headlines over the last few years and demonstrate the importance of negotiation in business. … Read 10 Great Examples of Negotiation in Business
What Leads to Renegotiation?
Renegotiation is generally triggered for one of two reasons: an imperfect contract or changed circumstances. The goal of any written contract is to express the parties’ full understanding of their deal. … Read What Leads to Renegotiation?
When Not to Show Your Hand in Negotiations
Here, we consider four types of information that may be best kept under wraps: sensitive or privileged information, information that isn’t yours to share, information that diminishes your power, and information that may fluctuate during negotiations. … Read When Not to Show Your Hand in Negotiations
The Negotiation Process in China
With its booming economy and growing international consumer influence, the role of negotiation in international business is more important than ever and negotiation skills appropriate for China are in high-demand. Here are a few negotiation tips to help you successfully navigate your next round of business negotiations in China. … Read The Negotiation Process in China
Does Your Negotiation Process Need Improvement?
An inefficient negotiation process wastes time and money. To create a negotiation process that eliminates headaches and leads to win-win deals, take a page from the NFL’s playbook. … Read Does Your Negotiation Process Need Improvement?
Contingency Contracts in Business Negotiations
Question: Lately I have been hearing a lot—both in the news and on the job—about companies using contingencies in contracts. Given that I sometimes negotiate deals that entail a lot of risk regarding how future events will play out, I am interested to know how contingencies work and how I might use them. … Read Contingency Contracts in Business Negotiations
Conflicts of Interest: How to Avoid and Manage Them
Conflicts of interest often arise when we hire agents to negotiate on our behalf. A dispute between TV writers and their agents highlights such competing motives and suggests how to handle them. … Read More